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The Big-mac Index

Purchasing Power Parity

The Code Ninjas
Tuilelaith, Dara, Kay Thari, Anya

University of Edinburgh

2021-11-26

======= >>>>>>> d40c7aa35a5a54060c160231c5ea681d28d83e7f
title: “The Big-mac Index”
subtitle: Purchasing Power Parity
author: The Code Ninjas
Tuilelaith, Dara, Kay Thari, Anya
institute: University of Edinburgh
date: 2021-11-25
output:
revealjs::revealjs_presentation:
self_contained: false

A statement of the overall goal / research question

Our research question is “What is Purchasing Power Parity (PPP) and how has it changed over the years across countries?”

Purchasing Power Parity: Compares how much a typical basket of goods in one country costs compared to that of another country.

What is PPP?

  • PPP stands for Purchasing Power Parity
  • It is a measurement used in economics to compare the purchasing power of different currencies in common units.
  • In theory, PPP should be equal to the exchange rate of these two countries, but in practice this is not the case.

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Code

# a boring regression
model <- lm(dist ~ speed, data = cars)
tidy(model)
## # A tibble: 2 × 5
##   term        estimate std.error statistic  p.value
##   <chr>          <dbl>     <dbl>     <dbl>    <dbl>
## 1 (Intercept)   -17.6      6.76      -2.60 1.23e- 2
## 2 speed           3.93     0.416      9.46 1.49e-12
glance(model)
## # A tibble: 1 × 12
##   r.squared adj.r.squared sigma statistic  p.value    df logLik   AIC   BIC
##       <dbl>         <dbl> <dbl>     <dbl>    <dbl> <dbl>  <dbl> <dbl> <dbl>
## 1     0.651         0.644  15.4      89.6 1.49e-12     1  -207.  419.  425.
## # … with 3 more variables: deviance <dbl>, df.residual <int>, nobs <int>

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Sepal.Length Sepal.Width Petal.Length Petal.Width Species
5.1 3.5 1.4 0.2 setosa
4.9 3.0 1.4 0.2 setosa
4.7 3.2 1.3 0.2 setosa
4.6 3.1 1.5 0.2 setosa
5.0 3.6 1.4 0.2 setosa
5.4 3.9 1.7 0.4 setosa

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